Business

India seeks partnerships for weapons

India seeks partnerships for weapons

By Himalayan News Service

New Delhi, January 31:

India today invited the world’s largest armaments firms to forge collaborations to develop hi-tech weapons that could be marketed around the world.

The invitation came from defence minister Pranab Mukherjee at the Defexpo-2006, attended by over 200 foreign firms, as he outlined India’s ambitious plans to purchase combat jets and artillery guns to modernise its armed forces. Inaugurating the biennial event, Mukherjee pointedly referred to the fact that India emerged as “the largest arms importer” among developing nations in 2004 and said the country was keen on forging “collaborations for export of Indian products”.

“The government is encouraging joint ventures, co-production and co-marketing to improve the utilisation of our production units and to improve their capabilities,” he said, pointing to India’s chain of 39 ordnance factories and defence laboratories that produce equipment ranging from cruise missiles to small arms, “With the support of our private sector, we aspire to bring in the latest technology, incorporate the same in the development of state of the

defence products for our armed forces and also export them to other countries.”

In recent years, India has jointly developed the BrahMos cruise missile with Russia, a homegrown helicopter that has been sold to Nepal and an indigenous jet fighter expected to enter service by 2012. Leading armaments firms like Lockheed Martin, Boeing, Thales, Rosoboronexport and Rayt-heon are among those taking part in the four-day long Defexpo to pitch their products to India and to explore the possibilities of forging collaborations.

“If we can produce quality weapons systems that are competitively priced, there is the possibility for exports,” Mukherjee said. He, however, admitted there had been a lukewarm response from the private sector to the opening up of defence production to private investment.

Pointing out that private companies had only submitted 26 letters of intent, he said, “There has not been much response.” Private investment would not be seen from an ‘ideological’ viewpoint and the government would welcome all players who offered competitive prices and efficient production, he said.

Mukherjee said the government would soon issue ‘request for proposals’ to buy 126 frontline jets to arrest declining force levels in the Indian Air Force (IAF) and take a decision on modernising the artillery by inducting hundreds of towed and self-propelled howitzers.

Following the cancellation of the deal with South Africa’s Denel for building an ordnance factory at Nalanda in Bihar, the government would soon decide on a new partner for the venture. India scrapped all arms deals with Denel last year following accusations that it had paid kickbacks to secure a contract for anti-material rifles.

Some 420 companies from 31 countries, including the US, Israel, Russia and Britain, are taking part in Defexpo, which the Confederation of Indian Industry (CII) and the defence ministry have jointly organised. From multifunctional radar surveillance systems to cell phone interceptors and jammers and sophisticated weapons like multi-role assault rifles, the exhibition offers a huge platform to showcase and market defence equipment.

“With the Indian government affecting many changes in the policy which has opened up defence sector reasonably, the expo could also help forge more partnerships.”